Today Artificial Intelligence (AI) has emerged as the defining technology of our era, central to economic competitiveness, national security, and societal transformation. While the United States, China, and Europe dominate the landscape, emerging economies are now charting their own collaborative pathways. The UAE and India, with complementary strengths, are uniquely positioned to form a powerful bilateral axis in AI development and collaboration.

The UAE’s National AI Strategy 2031 emphasizes capital raising, financing, 

innovations and infrastructure building, while India’s IndiaAI Mission focuses on democratized access, multilingual innovation and ethical governance. Together, these strategies can forge sovereign AI solutions that are globally competitive, regionally relevant and cost-efficient.

Policy Context and Strategic Drivers

UAE’s AI Ambitions

The UAE has moved rapidly to embed AI across governance, business, and society. The launch of the MGX Fund, which aims to manage USD 100 billion in AI assets, demonstrates the scale of its ambition to become a global AI powerhouse.

Abu Dhabi has announced plans to host the world’s largest AI campus, in partnership with entities like OpenAI, Oracle, and G42 under the Stargate Project (Axios, 2025). Dubai, meanwhile, is embedding AI into everyday governance—from passport-free, AI-powered immigration to instant work permit approvals and an AI-enabled Cabinet by 2026.

The Dubai AI Academy and Dubai AI Campus are scaling talent programs to train thousands of professionals. Furthermore, initiatives such as DIFC’s ambition to host 500 AI enterprises by 2028 reflect the country’s clear strategic trajectory.

India’s AI Strengths

India’s IndiaAI Mission, with a budget of ₹10,372 crore (~USD 1.2 billion), is designed to democratize AI by scaling datasets, infrastructure, and sovereign solutions. Projects such as BharatGen (a multilingual generative AI model) and AI Kosha (a repository of datasets and models) highlight India’s focus on inclusivity and digital sovereignty.

India’s greatest asset is its STEM-driven workforce—a large, English-speaking, cost-effective, and globally adaptable pool of AI engineers and innovators. The vibrant AI startup ecosystem in Bengaluru, Hyderabad, and Pune adds entrepreneurial momentum to these efforts.

Indian tech talent is unique in five ways:

1. Strong STEM foundations.

2. Cost-effectiveness at scale.

3. Multilingual innovation capacity.

4. Global adaptability and problem-solving skills.

5. Experience in building AI solutions across sectors.

Bengaluru’s GCC Ecosystem: A Strategic Hub

Bengaluru stands out as the ideal bridge for UAE–India AI collaboration. The city hosts over 185 Global Capability Centres (GCCs), many of which are transitioning into innovation hubs. Karnataka’s GCC Policy 2024–29 further strengthens the ecosystem by encouraging innovation-led investment.

With UAE capital and finance, Bengaluru’s GCCs could establish joint AI labs, mega GPU clusters for generative AI, and cross-border talent exchange programs linking India’s IITs with the Mohamed bin Zayed University of AI (MBZUAI) in Abu Dhabi.

Such partnerships could deliver AI-driven solutions in:

Climate resilience (desert agriculture, weather modeling).

Multilingual public services (Arabic-Hindi AI models).

Smart logistics (port and supply chain optimization).

Designing the Collaboration Framework

1 Capital and Talent Alignment

UAE: Financial capital, GPU/data infrastructure, policy incentives.

India: Engineering talent, multilingual AI, ethical governance frameworks.

2 Priority Sectors

1. Healthcare AI: Predictive diagnostics, affordable telemedicine.

2. Climate & Energy: Desert agriculture, renewable grids.

3. Trade & Logistics: AI-enabled port and supply chain optimization.

3 Governance and Intellectual Property

A Joint AI Innovation Council could manage intellectual property, align data governance standards, and ensure compliance with ethical frameworks. Representation from academia (IITs, MBZUAI), industry (AI startups, hyperscalers), and government would ensure balance.

5. Regional Impact and Strategic Autonomy

A UAE–India AI axis could position itself as the largest regional hub for AI innovation. Developing large language models (LLMs) in Arabic, Hindi, Bengali, and other Asian languages would:

Reduce dependence on Western platforms.

Lower costs for public and private sector AI adoption.

Strengthen digital sovereignty in the Global South.

This would also reinforce the UAE and India’s leadership in shaping the governance and ethics of AI globally.

6. Implementation Roadmap suggestions:

1. US$500 million AI Innovation Fund, seeded by UAE sovereign wealth and Indian private investors.

2. Twin mega GPU clusters in Bengaluru and Abu Dhabi for generative AI training.

3. Cross-border talent programs linking MBZUAI with Indian IITs and NITs.

4. Pilot projects in healthcare, climate, and logistics launched within 18 months.

7. GCCs as Innovation Multipliers

At the core of this partnership is the Global Capability Centre (GCC) ecosystem. According to BCG, only 8% of GCCs currently lead in innovation, but 90% are developing AI Centres of Excellence (CoEs).

Examples include Walmart Global Tech India, which deploys AI for inventory optimization, real-time substitutions, and personalized retail recommendations. GCCs are now moving beyond back-office roles into R&D, product design and digital transformation leadership.

However, AI innovation demands high upfront investments 

and companies hesitate due to uncertain returns. This is where UAE’s abundant capital can bridge the gap, funding AI-driven GCC innovation that can directly impact global supply chains, financial services, and public service delivery.

Redefining Future 

The UAE’s financial muscle and India’s AI talent base can together create an ethically grounded, globally competitive AI ecosystem. This collaboration can become a blueprint for cross-regional partnerships that strengthen innovation, digital sovereignty, and sustainable growth across the Middle East, South Asia, and Southeast Asia.

The UAE is embedding AI into governance and infrastructure with unmatched speed. India is democratizing AI with multilingual, inclusive models and ethical frameworks. Together, they can redefine the future of AI innovation.

In my personal perspective, initiatives such as the “Bengaluru Antenna” a concept I have been advocating, can anchor UAE investments in Bengaluru’s AI ecosystem, enabling constant innovation feedback loops between the two regions. With the right framework, this partnership can catalyze more in immediate investments and R&D efforts and set the foundation for long-term AI leadership.

References:

1. UAE Artificial Intelligence Office – AI Strategy 2031 and Publications.

2. Business Insider – UAE’s Rise as a Global AI Hub.

3. Government of India – IndiaAI Mission Press Release.

4. Bureaucrats India – AI-Driven Skilling and IndiaAI Mission.

5. Axios – UAE, OpenAI, Oracle, and G42’s Stargate Project (2025).

6. Reuters – UAE to Import Millions of Nvidia AI Chips (2025).

(The author holds a dual masters degree from Europe and the US and is an ex-international corporate banker currently serving as Visiting Professor in international marketing at a university in Bengaluru, India. Views expressed are personal. He can be reached at rameshkumarn180@gmail.com )